WASHINGTON — Family Dollar has agreed to pay $63 million to settle government claims that its stores routinely rang up higher prices than the ones posted on their shelves, but Southern Maryland shoppers should not expect a check yet, and Maryland is not one of the states that brought the case.
The Federal Trade Commission announced the settlement Nov. 12 with 17 state attorneys general. The deal is a proposed order, filed along with the complaint in U.S. District Court for the Eastern District of Virginia. It takes effect only if a judge approves and signs it.
The discount chain has stores across Calvert, Charles and St. Mary’s counties.
What the money covers
- $40 million for a consumer redress fund, payable to eligible consumers
- $20 million for a discount program for Family Dollar customers
- More than $3 million in payments to the states that joined the case
The FTC’s announcement does not say who counts as an eligible consumer, how much any one shopper might receive, how to file a claim or whether eligibility depends on the state where a customer shopped. Those terms would be set out in the proposed order and the claims process that follows court approval.
What the FTC did say is that Family Dollar must notify customers of their eligibility by posting clear notices in its stores and on its website and app. That makes the store itself the place to watch. The FTC also notes in every release that it never demands money or asks people to pay to receive a refund.
Which states are in, and Maryland’s absence
The states that joined the FTC are Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah and Wisconsin, according to Pennsylvania Attorney General Dave Sunday’s office.
Maryland is not on the list, so the state will not share in the payments to states. Neighboring Virginia, Delaware and West Virginia are not on it either.
That does not by itself settle whether Maryland customers can draw from the redress fund. The FTC is a federal agency and described the conduct as nationwide. The order’s two main requirements, a ban on misrepresenting prices and a pricing accuracy program that must be independently assessed and certified each year, apply to the company rather than to particular states.
What Family Dollar is accused of
According to the complaint, thousands of Family Dollar stores overcharged shoppers by charging more at the register than the price on the shelf, tag or advertisement, including in low-income communities with few full-service grocery stores. The FTC said the practice brought the company millions of dollars.
The agency said state and local regulators cited the chain for thousands of pricing violations over the past five years, with fines topping $3 million, and that the company paid more than $800,000 in penalties in separate state settlements over the past three years. It also alleged that shoppers were charged more than prices shown on the website and app, and that the app’s Smart Coupons often failed at checkout.
“Today’s order will ensure Family Dollar stops deceiving consumers about its prices and returns money to consumers harmed by these practices,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.
In the settlement, Family Dollar neither admits nor denies the allegations, Utah News Dispatch reported, citing the order.
The commission voted 2-0 to file the case. A similar lawsuit the FTC and a group of states filed Oct. 26 against Dollar General has not been settled and is still in court.
If you think you were overcharged
Shoppers who are charged more than a posted price at any Maryland store can file a complaint with the Consumer Protection Division of the Maryland Attorney General’s Office. Complaints about any retailer can also be reported to the FTC at ReportFraud.ftc.gov.
